Systems and methods for updating payment card expiration information

ABSTRACT

A computer-implemented method for updating merchant information regarding card-not-present recurring payment (CNP/RP) transactions is provided, wherein the method involves a recurring transaction initiated by a cardholder using payment card information stored by a merchant. The method includes querying a database coupled to a payment network to identify a candidate payment card having stale payment card data. The stale payment card data includes at least an existing expiration date that is within a predetermined period of time of a selected calendar date. The method also includes querying the database to identify at least one recent transaction involving the candidate payment card. The recent transaction includes payment card data having an updated expiration date. The method further includes notifying the merchant that the existing expiration date has been replaced with the updated expiration date.

BACKGROUND OF THE INVENTION

This invention relates generally to systems and methods for processingpayment transaction and, more particularly, to systems and methods forautomatically updating cardholder payment card expiration informationstored by a merchant.

The payment card industry includes payment transactions wherein thetransaction is recurring and the payment card is not present for thetransactions. These transactions are sometimes referred to as“card-not-present recurring payment” (CNP/RP) transactions.Specifically, CNP/RP transactions are payment transactions that usepayment card information stored by a merchant and wherein the paymentcard is not physically present for the actual transaction. For example,a health club member may wish to avoid mailing a monthly check for clubmembership dues. The member may instead register a payment card, such asa credit card, a debit card, or a prepaid card, with the club, enablingthe health club to automatically charge the payment card for the monthlydues on a particular day each month. In some such systems, the merchantstores an account number, an expiration date, and/or other informationassociated with the payment card and/or cardholder.

In the event that some or all of the merchant-stored payment cardinformation changes, there is a risk that payment transactions will bedenied due to the use of stale and incorrect information. In such acase, the merchant must contact the cardholder in order to update themerchant records, or the cardholder must contact the merchant to reporta change in information.

At least some systems enable merchants to submit billing files to aprocessing center or payment card system in order for the files to beupdated with up to date payment card information. The new information issubmitted to the processing center by an issuing bank that holds theaccount associated with the payment card.

None of the known recurring payment systems are capable of updating amerchant upon indication that a cardholder has physically used a cardwith a new expiration date, known as a “card-present transaction.”Accordingly, a system and method for updating of payment cardinformation stored by a merchant is needed, wherein the updated paymentcard information is identified and sent to the merchant when a CNP/RPtransaction is initiated, thereby reducing or avoiding deniedtransactions due to stale card data.

BRIEF DESCRIPTION OF THE INVENTION

In one aspect, a computer-implemented method for updating merchantinformation regarding card-not-present recurring payment (CNP/RP)transactions is provided, wherein the method involves a recurringtransaction initiated by a cardholder using payment card informationstored by a merchant. The method includes querying a database coupled toa payment network to identify a candidate payment card having stalepayment card data. The stale payment card data includes at least anexisting expiration date that is within a predetermined period of timeof a selected calendar date. The method also includes querying thedatabase to identify at least one recent transaction involving thecandidate payment card. The recent transaction includes payment carddata having an updated expiration date. The method further includesnotifying the merchant that the existing expiration date has beenreplaced with the updated expiration date.

In another aspect, a network-based system for updating merchantinformation regarding card-not-present recurring payment (CNP/RP)transactions is provided, and involves a recurring transaction initiatedby a cardholder using payment card information stored by a merchant. Thesystem includes a merchant computer associated with the merchant. Themerchant computer is coupled to a merchant database. The merchantdatabase is for storing the payment card information for the paymentcard that is registered to be used in the CNP/RP transaction. Thepayment card information includes an existing expiration date. Thesystem also includes a payment network comprising a first database forstoring payment card information, a second database for storingtransaction information including payment card information, and apayment network server configured to be coupled to the merchant computerand to the first database. The payment network server is configured toquery the first database to identify a candidate payment card havingstale payment card data. The stale payment card data includes at leastan existing expiration date that is within a predetermined period oftime of a selected calendar date. The payment network server is alsoconfigured to query the second database to identify at least one recenttransaction involving the candidate payment card. The at least onerecent transaction includes payment card data having an updatedexpiration date. The payment network server is further configured tonotify the merchant that the existing expiration date has been replacedwith the updated expiration date.

In yet another aspect, computer-readable storage media havingcomputer-executable instructions embodied thereon is provided. Whenexecuted by at least one processor, the computer-executable instructionscause the processor to query a first database to identify a candidatepayment card having stale payment card data. The stale payment card dataincludes at least an existing expiration date that is within apredetermined period of time of a selected calendar date. Thecomputer-executable instructions also cause the processor to query asecond database to identify at least one recent transaction involvingthe candidate payment card. The at least one recent transaction includespayment card data having an updated expiration date. Thecomputer-executable instructions further cause the processor to notify amerchant associated with a card-not-present recurring payment (CNP/RP)transaction that the existing expiration date has been replaced with theupdated expiration date.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1-6 show example embodiments of the method and system describedherein.

FIG. 1 is a simplified block diagram of a conventional billing updateprocess.

FIG. 2 is a simplified block diagram of an example embodiment of aserver architecture of a system in accordance with one embodiment of thepresent invention.

FIG. 3 is an expanded block diagram of an example embodiment of a serverarchitecture of a system in accordance with one embodiment of thepresent invention.

FIG. 4 illustrates an example configuration of a client system shown inFIGS. 2 and 3.

FIG. 5 illustrates an example configuration of a server system shown inFIGS. 2 and 3.

FIG. 6 is a simplified flowchart illustrating an example processutilized by system shown in FIG. 3 for automatically updating cardholderpayment card expiration information stored by a merchant.

DETAILED DESCRIPTION OF THE INVENTION

Described in detail herein are example embodiments of systems andmethods that facilitate updating payment card information stored by amerchant for use in recurring payment transactions in which a card isnot presented to the merchant, also called “card-not-present recurringpayment” (CNP/RP) transactions. The systems and methods facilitate, forexample, transferring new payment card information electronically over anetwork to update payment card information stored by a merchant that isfound to be stale due to a change in card status and/or the issuance ofa new card to the cardholder by an issuing bank. A technical effect ofthe systems and methods described herein include at least one of (a)identifying a payment card associated with a CNP/RP transaction eithernearing expiration or having recently expired; (b) determining whether adatabase coupled to the payment card network includes new or updatedinformation for the payment card; (c) notifying a merchant associatedwith the CNP/RP transaction that the payment card information has becomestale; and (d) if the database includes updated payment cardinformation, transmitting the updated information to the merchant,wherein the merchant updates the stale payment card information.

As used herein, the terms “transaction card,” “financial transactioncard,” and “payment card” refer to any suitable transaction card, suchas a credit card, a debit card, a prepaid card, a charge card, amembership card, a promotional card, a frequent flyer card, anidentification card, a gift card, and/or any other device that may holdpayment account information, such as mobile phones, Smartphones,personal digital assistants (PDAs), key fobs, and/or computers. Eachtype of transaction card can be used as a method of payment forperforming a transaction. In addition, cardholder account behavior caninclude but is not limited to purchases, management activities (e.g.balance checking), bill payments, achievement of targets (meetingaccount balance goals, paying bills on time), and/or productregistrations (e.g. mobile application downloads).

As used herein, the term “card-present transaction” refers to atransaction in which a cardholder's payment card is present at the timethe transaction is initiated. For example, when a consumer purchasesgroceries at a supermarket by swiping a credit card, this transaction isa card-present transaction because the cardholder, i.e., the consumer,has their payment card, i.e., the credit card, present at the time ofthe transaction. As used herein, the term “card-not-present transaction”refers to a transaction in which a cardholder's payment card is notnecessarily present at the time the transaction is initiated, butinstead the cardholder's account is identified without use of thephysical payment card. For example, a consumer/cardholder purchasing aproduct or service from a merchant's internet web site may enter theiraccount information. The merchant then initiates a transaction for theproduct or service using the account information entered by theconsumer, without the payment card in the presence of the merchant.

As used herein, the term “account-on-file transaction” refers to atransaction in which a cardholder's physical payment card is notutilized to identify the cardholder's account information, but ratherthe cardholder's account information is stored and recalled at the timeof the transaction, and thereby attached to the transaction forprocessing through the payment network. For example, in a CNP/RPtransaction, a merchant, such as a workout gym, may have acustomer/cardholder's payment card account information on file, which itmay use on a periodic basis to initiate a CNP/RP transaction. Themerchant, in this example, may initiate this transaction without thepresence of the cardholder's card, through use of the accountinformation on file. In another example, in an e-Commerce transaction, aconsumer/cardholder may frequent a merchant's internet web site.Merchants may store payment card information associated with theirconsumers in order to facilitate ease of future purchases. Theconsumer/cardholder, in this example, may initiate a transaction withthe merchant and use the account information stored on file with themerchant. The merchant then, in this example, may initiate a transactionwithout the presence of the cardholder's card, and instead utilize theaccount information on file.

As used herein, the term “merchant information”, in the context of“account-on-file” transactions, such as CNP/RP transactions, refers tocardholder payment card information stored by a merchant to facilitatefuture transactions with the merchant on behalf of the cardholder.Merchant information may include any information associated with thecardholder's payment card and the CNP/RP transactions, including atleast an expiration date.

As used herein, an acquiring bank, or acquirer, is typically a bank atwhich a merchant has an account. In addition, an issuing bank, orissuer, is typically a bank at which a customer, or cardholder, holds anaccount, which may be debited or charged through the use of a pre-paidcard, a debit card, or a credit card.

As used herein, a processor may include any programmable systemincluding systems using micro-controllers, reduced instruction setcircuits (RISC), application specific integrated circuits (ASICs), logiccircuits, and any other circuit or processor capable of executing thefunctions described herein. The above examples are example only, and arethus not intended to limit in any way the definition and/or meaning ofthe term “processor.”

In one embodiment, a computer program is provided, and the program isembodied on a computer readable medium. In an example embodiment, thesystem is executed on a single computer system, without requiring aconnection to a sever computer. In a further example embodiment, thesystem is being run in a Windows® environment (Windows is a registeredtrademark of Microsoft Corporation, Redmond, Wash.). In yet anotherembodiment, the system is run on a mainframe environment and a UNIX®server environment (UNIX is a registered trademark of X/Open CompanyLimited located in Reading, Berkshire, United Kingdom). The applicationis flexible and designed to run in various different environmentswithout compromising any major functionality. In some embodiments, thesystem includes multiple components distributed among a plurality ofcomputing devices. One or more components may be in the form ofcomputer-executable instructions embodied in a computer-readable medium.The systems and processes are not limited to the specific embodimentsdescribed herein. In addition, components of each system and eachprocess can be practiced independent and separate from other componentsand processes described herein. Each component and process can also beused in combination with other assembly packages and processes.

The following detailed description illustrates embodiments of theinvention by way of example and not by way of limitation. It iscontemplated that the invention has general application to processingfinancial transaction data by a third party in industrial, commercial,and residential applications.

As used herein, an element or step recited in the singular and proceededwith the word “a” or “an” should be understood as not excluding pluralelements or steps, unless such exclusion is explicitly recited.Furthermore, references to “example embodiment” or “one embodiment” ofthe present invention are not intended to be interpreted as excludingthe existence of additional embodiments that also incorporate therecited features.

FIG. 1 is a flowchart 20 illustrating a conventional billing updateprocess. The process begins when a cardholder establishes 22 a recurringpayment relationship with a merchant. The cardholder provides paymentcard information to the merchant, enabling the merchant to periodicallycharge the cardholder for a good or service by automatically chargingthe payment card on file. For example, the cardholder enters the paymentcard information into a web browser and submits the payment cardinformation to the merchant, and the merchant stores the payment cardinformation in a database and/or server. The payment card informationused by the merchant may include the cardholder's name as it appears onthe payment card, a billing address, an account number or card number ofthe payment card, and/or an expiration date of the payment card.

At some point after the cardholder establishes 22 the recurring paymentrelationship with the merchant, an issuing bank, or issuer, sends 24 thecardholder a replacement payment card or may change one or more piece ofpayment card information, such as the expiration date. This may be dueto a loss of the payment card by the cardholder or a reissue of thepayment card due to the passage of the payment card expiration date. Insuch a case, the new payment card information is not on file with themerchant. Thus, if the merchant attempts to charge the cardholder for arecurring payment using the payment card information stored by themerchant, the transaction is at risk of being denied due to the stalepayment card information. To prevent a denial, the issuer may beenrolled in an update service that uses a MasterCard® payment network(MasterCard International Incorporated, Purchase, New York). TheMasterCard® payment network is a proprietary communications standardpromulgated by MasterCard International Incorporated® for the exchangeof financial transaction data between financial institutions that aremembers of MasterCard International Incorporated®. The issuer sends 26updated payment card information to the payment network, which stores 28the updated payment card information.

Acquiring banks, or acquirers, may also enroll in such an update servicein order to obtain updated payment card information and to provide theupdated payment card information to merchants. For example, an acquirermay periodically query 30 the payment network for updated payment cardinformation for payment cards associated with their merchants' recurringpayment transactions. The payment network determines 32 whether thereexists updated payment card information and, if so, sends the updatedinformation to the acquirer. The acquirer then sends 34 the updatedpayment card information to the merchant and the merchant updates thestale payment card information. Additionally, such a process includes aperiodic report 36 of updated payment card information that is sent toacquirers and issuers.

Financial transaction cards, or payment cards, may refer to creditcards, debit cards, and prepaid cards. These cards may all be used as amethod of payment for performing a transaction, such as a recurringtransaction. As described herein, the term “financial transaction card”or “payment card” includes cards such as credit cards, debit cards, andprepaid cards, but also includes any other device that may hold paymentaccount information for use in recurring transactions, such as mobilephones, personal digital assistants (PDAs), and key fobs.

FIG. 2 is a simplified block diagram of an example payment processingsystem 100 including a plurality of computer devices in accordance withone embodiment of the present invention. In one embodiment, system 100is the financial transaction card payment system shown in FIG. 1, whichmay be utilized for processing recurring payments.

More specifically, in the example embodiment, system 100 includes aserver system 112, and a plurality of client sub-systems, also referredto as client systems 114, connected to server system 112. In oneembodiment, client systems 114 are computers including a web browser,such that server system 112 is accessible to client systems 114 usingthe Internet. Client systems 114 are interconnected to the Internetthrough many interfaces including a network 115, such as a local areanetwork (LAN) or a wide area network (WAN), dial-in-connections, cablemodems, and special high-speed Integrated Services Digital Network(ISDN) lines. Client systems 114 could be any device capable ofinterconnecting to the Internet including a web-based phone, PDA, orother web-based connectable equipment.

System 100 also includes point-of-sale (POS) terminals 118, which may beconnected to client systems 114 and may be connected to server system112. POS terminals 118 are interconnected to the Internet through manyinterfaces including a network, such as a local area network (LAN) or awide area network (WAN), dial-in-connections, cable modems, wirelessmodems, and special high-speed ISDN lines. POS terminals 118 could beany device capable of interconnecting to the Internet and including aninput device capable of reading information from a cardholder'sfinancial transaction card.

A database server 116 is connected to database 120, which containsinformation on a variety of matters, as described below in greaterdetail. In one embodiment, centralized database 120 is stored on serversystem 112 and can be accessed by potential users at one of clientsystems 114 by logging onto server system 112 through one of clientsystems 114. In an alternative embodiment, database 120 is storedremotely from server system 112 and may be non-centralized.

Database 120 may include a single database having separated sections orpartitions or may include multiple databases, each being separate fromeach other. Database 120 may store transaction data generated as part ofsales activities conducted over the processing network including datarelating to merchants, account holders or customers, issuers, acquirers,and/or purchases made. Database 120 may also store account dataincluding at least one of a cardholder name, a cardholder address, anaccount number, account expiration information, and other accountidentifier. Database 120 may also store data about a merchant, includinga merchant identifier that identifies each merchant registered to usethe network, and instructions for settling transactions includingmerchant bank account information. Database 120 may also store purchasedata associated with items being purchased by a cardholder from amerchant, and authorization request data. As discussed below, paymentcard information that is updated periodically is stored within database120, including account numbers, expiration dates, and account statuses,such as whether the account is closed. Data relating to the cardholderof a payment card may also be stored within database 120.

In the example embodiment, one of client systems 114 may be associatedwith acquirer bank while another one of client systems 114 may beassociated with an issuer bank, a cardholder, and/or a merchant. POSterminal 118 may be associated with a participating merchant or may be acomputer system and/or mobile system used by a cardholder making anon-line purchase or payment. Server system 112 may be associated withthe payment network. In the example embodiment, server system 112 isassociated with a payment network, and may be referred to as a paymentcomputer system. Server system 112 may be used for processingtransaction data. In addition, client systems 114 and/or POS terminal118 may include a computer system associated with at least one of anonline bank, a bill payment outsourcer, an acquirer bank, an acquirerprocessor, an issuer bank associated with a transaction card, an issuerprocessor, a remote payment system, and/or a biller.

FIG. 3 is an expanded block diagram of an example embodiment of a serverarchitecture of a processing system 122 including other computer devicesin accordance with one embodiment of the present invention. Componentsin system 122, identical to components of system 100 (shown in FIG. 2),are identified in FIG. 3 using the same reference numerals as used inFIG. 2. System 122 includes server system 112, client systems 114, andPOS terminals 118. Server system 112 further includes database server116, a transaction server 124, a web server 126, a fax server 128, adirectory server 130, and a mail server 132. A storage device 134 iscoupled to database server 116 and directory server 130. Servers 116,124, 126, 128, 130, and 132 are coupled in a local area network (LAN)136. In addition, an issuer bank workstation 138, an acquirer bankworkstation 140, and a third party processor workstation 142 may becoupled to LAN 136. In the example embodiment, issuer bank workstation138, acquirer bank workstation 140, and third party processorworkstation 142 are coupled to LAN 136 using network connection 115.Alternatively, workstations 138, 140, and 142 are coupled to LAN 136using an Internet link or are connected through an Intranet.

Each workstation 138, 140, and 142 is a personal computer having a webbrowser. Although the functions performed at the workstations typicallyare illustrated as being performed at respective workstations 138, 140,and 142, such functions can be performed at one of many personalcomputers coupled to LAN 136. Workstations 138, 140, and 142 areillustrated as being associated with separate functions only tofacilitate an understanding of the different types of functions that canbe performed by individuals having access to LAN 136.

Server system 112 is configured to be communicatively coupled to variousindividuals, including employees 144 and to third parties, e.g., accountholders, customers, auditors, developers, cardholders, merchants,acquirers, issuers, etc., 146 using an ISP Internet connection 148. Thecommunication in the example embodiment is illustrated as beingperformed using the Internet, however, any other wide area network (WAN)type communication can be utilized in other embodiments, i.e., thesystems and processes are not limited to being practiced using theInternet. In addition, and rather than WAN 150, local area network 136could be used in place of WAN 150.

In the example embodiment, any authorized individual having aworkstation 154 can access system 122. At least one of the clientsystems includes a manager workstation 156 located at a remote location.Workstations 154 and 156 are personal computers having a web browser.Also, workstations 154 and 156 are configured to communicate with serversystem 112. Furthermore, fax server 128 communicates with remotelylocated client systems, including a client system 156 using a telephonelink. Fax server 128 is configured to communicate with other clientsystems 138, 140, and 142 as well.

FIG. 4 illustrates an example configuration of a user system 202operated by a user 201, such as a cardholder. User system 202 mayinclude, but is not limited to, client systems 114, 138, 140, and 142,POS terminal 118, workstation 154, and manager workstation 156. In theexample embodiment, user system 202 includes a processor 205 forexecuting instructions. In some embodiments, executable instructions arestored in a memory area 210. Processor 205 may include one or moreprocessing units, for example, a multi-core configuration. Memory area210 is any device allowing information such as executable instructionsand/or written works to be stored and retrieved. Memory area 210 mayinclude one or more computer readable media.

User system 202 also includes at least one media output component 215for presenting information to user 201. Media output component 215 isany component capable of conveying information to user 201. In someembodiments, media output component 215 includes an output adapter suchas a video adapter and/or an audio adapter. An output adapter isoperatively coupled to processor 205 and operatively couplable to anoutput device such as a display device, a liquid crystal display (LCD),organic light emitting diode (OLED) display, or “electronic ink”display, or an audio output device, a speaker or headphones.

In some embodiments, user system 202 includes an input device 220 forreceiving input from user 201. Input device 220 may include, forexample, a keyboard, a pointing device, a mouse, a stylus, a touchsensitive panel, a touch pad, a touch screen, a gyroscope, anaccelerometer, a position detector, or an audio input device. A singlecomponent such as a touch screen may function as both an output deviceof media output component 215 and input device 220. User system 202 mayalso include a communication interface 225, which is communicativelycouplable to a remote device such as server system 112. Communicationinterface 225 may include, for example, a wired or wireless networkadapter or a wireless data transceiver for use with a mobile phonenetwork, Global System for Mobile communications (GSM), 3G, or othermobile data network or Worldwide Interoperability for Microwave Access(WIMAX).

Stored in memory area 210 are, for example, computer readableinstructions for providing a user interface to user 201 via media outputcomponent 215 and, optionally, receiving and processing input from inputdevice 220. A user interface may include, among other possibilities, aweb browser and client application. Web browsers enable users, such asuser 201, to display and interact with media and other informationtypically embedded on a web page or a website from server system 112. Aclient application allows user 201 to interact with a server applicationfrom server system 112.

FIG. 5 illustrates an example configuration of a server system 301 suchas server system 112 (shown in FIGS. 2 and 3). Server system 301 mayinclude, but is not limited to, database server 116, transaction server124, web server 126, fax server 128, directory server 130, and mailserver 132.

Server system 301 includes a processor 305 for executing instructions.Instructions may be stored in a memory area 310, for example. Processor305 may include one or more processing units (e.g., in a multi-coreconfiguration) for executing instructions. The instructions may beexecuted within a variety of different operating systems on the serversystem 301, such as UNIX®, LINUX, Microsoft Windows®, etc. It shouldalso be appreciated that upon initiation of a computer-based method,various instructions may be executed during initialization. Someoperations may be required in order to perform one or more processesdescribed herein, while other operations may be more general and/orspecific to a particular programming language (e.g., C, C#, C++, Java,or other suitable programming languages, etc.).

Processor 305 is operatively coupled to a communication interface 315such that server system 301 is capable of communicating with a remotedevice such as a user system or another server system 301. For example,communication interface 315 may receive requests from client system 114via the Internet, as illustrated in FIGS. 2 and 3.

Processor 305 may also be operatively coupled to a storage device 134.Storage device 134 is any computer-operated hardware suitable forstoring and/or retrieving data. In some embodiments, storage device 134is integrated in server system 301. For example, server system 301 mayinclude one or more hard disk drives as storage device 134. In otherembodiments, storage device 134 is external to server system 301 and maybe accessed by a plurality of server systems 301. For example, storagedevice 134 may include multiple storage units such as hard disks orsolid state disks in a redundant array of inexpensive disks (RAID)configuration. Storage device 134 may include a storage area network(SAN) and/or a network attached storage (NAS) system.

In some embodiments, processor 305 is operatively coupled to storagedevice 134 via a storage interface 320. Storage interface 320 is anycomponent capable of providing processor 305 with access to storagedevice 134. Storage interface 320 may include, for example, an AdvancedTechnology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, aSmall Computer System Interface (SCSI) adapter, a RAID controller, a SANadapter, a network adapter, and/or any component providing processor 305with access to storage device 134.

Memory area 310 may include, but are not limited to, random accessmemory (RAM) such as dynamic RAM (DRAM) or static RAM (SRAM), read-onlymemory (ROM), erasable programmable read-only memory (EPROM),electrically erasable programmable read-only memory (EEPROM), andnon-volatile RAM (NVRAM). The above memory types are example only, andare thus not limiting as to the types of memory usable for storage of acomputer program.

FIG. 6 is a simplified flowchart 400 illustrating an example processutilized by a system 100 (shown in FIG. 2) for automatically updatingcardholder payment card expiration information stored by a merchant.System 100 is sometimes referred to as the recurring payment transactionsystem, which may be utilized for processing recurring payments usingpayment card information stored by a merchant. In the exampleembodiment, system 100 may be utilized by an issuer that issues apayment card, a cardholder who uses the payment card to tender paymentfor a recurring purchase from a merchant, a merchant that sells aproduct or service, an acquirer, or a payment network for processing thepayment transaction. System 100 may also be utilized by the paymentnetwork to send updated payment card information to a merchant forupdating stale payment card information stored by the merchant.

In the example embodiment, system 100 facilitates updating stale paymentcard information. A technical effect of the systems and methodsdescribed herein is achieved by storing, by a cardholder, payment cardinformation at a merchant. For example, the cardholder may enter thepayment card information using a web browser or the merchant may enterthe payment card information into their bill payment system. The paymentcard information may include information such as: an account or cardnumber; an expiration date for the payment card; and/or a cardholdername. The merchant then uses the stored payment card information forperiodic, or recurring, transactions. At some point, however, thepayment card will near expiration or expire, and the cardholder may beissued a card with a new expiration date. If the merchant attempts touse the stale payment card data, the CNP/RP transaction may be denied.

In the example embodiment, during processing of CNP/RP transactions,system 100 queries a database server 116 (shown in FIG. 2) andidentifies 402 at least one payment card with an expiration date nearingexpiration or having already expired. In some embodiments, theprocessing and identification 402 of CNP/RP transactions may occurduring batch processing of transactions, and may occur nightly, or onother periodic periods. In other embodiments, the query andidentification 402 may occur contemporaneously with a transactionsubmitted by, for example, a merchant or a cardholder, such as in ane-commerce card not present, account on file transaction. In such asituation, the account associated with the transaction may be analyzedprior to further processing of the transaction to identify 402 whetheror not the transaction involves a payment card with an expiration datenearing expiration or having already expired. Further, in someembodiments, the query considers only payment cards known to beassociated with CNP/RP transactions. Further, in some embodiments, thepayment card may be identified 402 based at least in part on receivingupdated payment card information from an issuer after the issuer hasissued an updated card. In the example embodiment, database server 116queries a database 120 having at least payment card information. Onceidentified 402, the “candidate” payment card will have an “old”expiration date, i.e., an expiration date nearing expiration or havingrecently expired. Such a card is referred to, herein, as being “stale.”Further, as used herein, the term “candidate payment card” refers to apayment card that is under investigation regarding whether it has datastored by a merchant that may benefit from an update.

Also, in the example embodiment, system 100 is configured to identify404 a recent transaction or transactions involving the payment cardhaving an updated expiration date. System 100 searches database 120 forrecent “card-present” transactions involving the payment card.Alternatively, system 100 may search database 120 for any recenttransactions involving the payment card which may have updatedexpiration date information. Each recent transaction has associatedpayment card information, including a “current” expiration date. In thecase of a payment card that is still active, the “current” expirationdate of the recent transaction should match the “old” expiration dateassociated with the payment card. However, if the dates are different, apayment card update event may have occurred. System 100 compares 410 thecurrent expiration date of the transaction to the “old” expiration dateidentified 402 above. If the current expiration date for the paymentcard is different from, and newer than, the old expiration date, thisidentifies a payment card reissue situation in which the cardholder hasactivated a reissued card, thereby potentially requiring an update toany merchants associated with CNP/RP transactions for this payment card.In the example embodiment, database server 116 queries a database 120having at least payment card transaction information. In someembodiments, the database used for identifying 402 payment cards and thedatabase used for identifying 404 recent transactions may be the samedatabase 120. Alternatively, different databases 120 residing on thesame or different servers 112 or database servers 116 may be used.Further, database server(s) 116 may belong to any participant in thepayment network.

Further, in the example embodiment, after having identified a CNP/RPtransaction merchant and a payment card for updating, system 100notifies 412 the merchant that the “old” set of payment card informationhas become stale. In the example embodiment, notification involvessending 420, over the payment card network, new payment card informationto the acquirer associated with the identified merchant. The acquirerthen sends 422 new payment card information to merchant, whosubsequently updates 424 the stored CNP/RP payment card information intheir own database. In some embodiments, the original CNP/RP transactionmay be enhanced by appending the new information to the transaction. Theissuer may allow the CNP/RP transaction to proceed, or the issuer mayreject the transaction. The merchant, in this embodiment, will receivethe enhanced transaction and the new expiration date, and therebyupdates the account-on-file information for that particular payment cardwith the new expiration date. Alternatively, the update information maybe transmitted separately to the merchant.

For example, a cardholder establishes a CNP/RP transaction with theirgym that includes a monthly transaction for their membership fee. Themerchant gym stores the cardholder's original payment card information,and subsequently performs monthly transactions using the originalpayment card information. When the payment card nears expiration, theissuer of the payment card sends the cardholder a new payment card thatincludes an updated expiration date. The cardholder activates the newpayment card, thereby automatically deactivating the original paymentcard. If the merchant gym processes the next monthly transaction for thecardholder using the original payment card information the merchant hasstored, the transaction may fail. However, the cardholder may performanother card present transaction with the new payment card information.The systems and methods described herein recognize that the cardholderhas initiated a transaction with an updated payment card, and recognizethat the merchant gym may have stale information relative to that samepayment card. If the updated expiration date stored by database 120differs from the expiration date stored by the merchant gym, themerchant will update at least its stored expiration date to match theexpiration date stored by database 120.

As used herein, the term “stale”, as used with regard to a payment card,generally refers to the integrity of the data associated with thepayment card. “Stale” payment card data may be data that is currentlybad, or incorrect, expired, or otherwise insufficient to complete apayment card transaction. Additionally, “stale” payment card data may bedata that is about to become bad, incorrect, expired, or otherwiseinsufficient. In the example embodiment, an expiration date associatedwith a payment card is “stale” when the expiration date has passed.Further, the expiration date may be considered “stale” prior to theexpiration date. In common industry practice, a payment card may bereissued to a cardholder days, weeks, or months prior to the expirationdate of the original payment card. Cardholders often activate thereissued payment card, a transaction that may deactivate the originalpayment card. Any CNP/RP transaction using the original payment carddata after the cardholder has activated the reissued payment card mayfail. In the example embodiment, payment cards are treated as “stale”any time after 60 days prior to their original expiration date.Alternatively, other stale dates, such as between 0 and 90 days prior tothe original expiration date, may be used. Further, a stale date afterthe original expiration date may also be used, and still be within thescope of this invention.

Further, as used herein, a “stale date” is a date at which payment cardshaving an expiration date before such date are considered “stale”. Forexample, if the system uses a period of 60 days (or 2 calendar months)as the stale period, a payment card with an original expiration date ofJul. 1, 2012 will be considered “stale” 60 days (or 2 calendar months)prior to the expiration date, or May 1, 2012. After this “stale date”,May 1, 2012, the system will start considering this example payment cardas a candidate for potentially requiring an update to a merchant havinga CNP/RP transaction with this payment card.

In the example embodiment, identifying 402 a payment card andidentifying 404 recent transaction information for the card containingupdated expiration information each are performed by the payment cardnetwork. Alternatively, to the extent possible, any party that enablesoperation of system 100, such as, without limitation, an issuer or anacquirer, may perform the systems and methods described herein.

The systems and methods described herein enable automatically updatingcardholder payment card expiration information stored by a merchant,prior to a failed CNP/RP transaction. The network identifies expirationdate changes for payment cards associated with CNP/RP transactions, andpushes an unsolicited update to the merchant, which alleviates burden onthe merchants to manually solicit updated card information from theircustomers. In addition, the issuing bank, the acquiring bank, and themerchant benefit from lower rates of transaction denials due to staleinformation stored by the merchant, and the cardholder receives theproducts or services they expect without interruption. This lowers thecost of operations for the issuing bank, acquiring bank, and/or merchantby alleviating the need to contact the cardholder, and also results ingreater satisfaction for the cardholder in that the payment cardinformation only needs to be entered at the initial setup of therecurring payment.

Although the systems and methods described herein are described in thecontext of real time payment card information updates, it is understoodthat the apparatus and methods are not limited to such systems and/ormethods. Likewise, the system components illustrated are not limited tothe specific embodiments herein, but rather, components of the systemmay be utilized independently and separately from other componentsdescribed herein. Further, although the systems and methods describedherein are described in the context of card-not-present recurringpayment (CNP/RP) transactions, it is understood that the systems andmethods are not limited to just CNP/RP transactions, but are applicableto other types of “account-on-file” transactions where a 3^(rd) party,such as a merchant, has a cardholder's payment card information on file.

While the invention has been described in terms of various specificembodiments, those skilled in the art will recognize that the inventioncan be practiced with modification within the spirit and scope of theclaims.

The term processor, as used herein, refers to central processing units,microprocessors, microcontrollers, reduced instruction set circuits(RISC), application specific integrated circuits (ASIC), logic circuits,and any other circuit or processor capable of executing the functionsdescribed herein.

As used herein, the terms “software” and “firmware” are paymentable, andinclude any computer program stored in memory for execution by aprocessor, including RAM memory, ROM memory, EPROM memory, EEPROMmemory, and non-volatile RAM (NVRAM) memory. The above memory types areexample only, and are thus not limiting as to the types of memory usablefor storage of a computer program.

As will be appreciated based on the foregoing specification, theabove-described embodiments of the disclosure may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof,wherein the technical effect is determining a storage location,determining a stock count, receiving a request for a customer networkunit, processing the request, generating and transmitting a request fordeployment of the customer unit, and adjusting the stock count in thestorage location. Any such resulting program, having computer-readablecode means, may be embodied or provided within one or morecomputer-readable media, thereby making a computer program product,i.e., an article of manufacture, according to the discussed embodimentsof the disclosure. The computer-readable media may be, for example, butis not limited to, a fixed (hard) drive, diskette, optical disk,magnetic tape, semiconductor memory such as read-only memory (ROM),and/or any transmitting/receiving medium such as the Internet or othercommunication network or link. The article of manufacture containing thecomputer code may be made and/or used by executing the code directlyfrom one medium, by copying the code from one medium to another medium,or by transmitting the code over a network.

These computer programs (also known as programs, software, softwareapplications, “apps”, or code) include machine instructions for aprogrammable processor, and can be implemented in a high-levelprocedural and/or object-oriented programming language, and/or inassembly/machine language. As used herein, the terms “machine-readablemedium” “computer-readable medium” refers to any computer programproduct, apparatus and/or device (e.g., magnetic discs, optical disks,memory, Programmable Logic Devices (PLDs)) used to provide machineinstructions and/or data to a programmable processor, including amachine-readable medium that receives machine instructions as amachine-readable signal. The “machine-readable medium” and“computer-readable medium,” however, do not include transitory signals.The term “machine-readable signal” refers to any signal used to providemachine instructions and/or data to a programmable processor.

This written description uses examples to disclose the invention,including the best mode, and also to enable any person skilled in theart to practice the invention, including making and using any devices orsystems and performing any incorporated methods. The patentable scope ofthe invention is defined by the claims, and may include other examplesthat occur to those skilled in the art. Such other examples are intendedto be within the scope of the claims if they have structural elementsthat do not differ from the literal language of the claims, or if theyinclude equivalent structural elements with insubstantial differencesfrom the literal languages of the claims.

1. A computer-implemented method for updating merchant informationregarding card-not-present recurring payment (CNP/RP) transactionsincluding a recurring transaction initiated by a cardholder usingpayment card information stored by a merchant, the method using acomputer device including a processor and a memory, said methodcomprising: querying, by the processor, a database coupled to a paymentnetwork to identify a candidate payment card having stale payment carddata, wherein the stale payment card data includes at least an existingexpiration date that is within a predetermined period of time of aselected calendar date; querying, by the processor, the database toidentify at least one recent transaction involving the candidate paymentcard, wherein the recent transaction includes payment card data havingan updated expiration date; storing, in the memory, the updatedexpiration date; and notifying the merchant that the existing expirationdate has been replaced with the updated expiration date.
 2. A method inaccordance with claim 1 wherein querying a database coupled to a paymentnetwork further includes identifying a candidate payment card having anexisting expiration date after a stale date, wherein the stale date is apredetermined number of days before the existing expiration date.
 3. Amethod in accordance with claim 1 wherein notifying the merchant furtherincludes transmitting the updated expiration date to the merchant.
 4. Amethod in accordance with claim 3 wherein notifying the merchant furtherincludes transmitting the payment card data from the payment network tothe merchant.
 5. A method in accordance with claim 4 further comprisingupdating the payment card information stored by the merchant to matchthe payment card data received from the payment network.
 6. A method inaccordance with claim 1 wherein querying a database coupled to a paymentnetwork further includes identifying a candidate payment card associatedwith one or more CNP/RP transactions.
 7. A method in accordance withclaim 1 wherein notifying the merchant further includes notifying anacquirer associated with the merchant that the existing expiration datehas been replaced with the updated expiration date, and that the updatedexpiration date should be used for future transactions.
 8. Anetwork-based system for updating merchant information regardingcard-not-present recurring payment (CNP/RP) transactions including arecurring transaction initiated by a cardholder using payment cardinformation stored by a merchant, said system comprising: a merchantcomputer associated with the merchant, the merchant computer coupled toa merchant database for storing the payment card information for thepayment card that is registered to be used in the CNP/RP transaction,the payment card information including an existing expiration date; anda payment network comprising a first database for storing payment cardinformation, a second database for storing transaction informationincluding payment card information, and a payment network serverconfigured to be coupled to said merchant computer and to said firstdatabase, the payment network server configured to: query the firstdatabase to identify a candidate payment card having stale payment carddata, wherein the stale payment card data includes at least an existingexpiration date that is within a predetermined period of time of aselected calendar date; query the second database to identify at leastone recent transaction involving the candidate payment card, wherein theat least one recent transaction includes payment card data having anupdated expiration date; and notify the merchant that the existingexpiration date has been replaced with the updated expiration date.
 9. Asystem in accordance with claim 8 wherein querying the first databasefurther includes identifying a candidate payment card having an existingexpiration date after a stale date, wherein the stale date is apredetermined number of days before the existing expiration date.
 10. Asystem in accordance with claim 8 wherein notifying the merchant furtherincludes transmitting the updated expiration date to the merchant.
 11. Asystem in accordance with claim 10 wherein notifying the merchantfurther includes transmitting the payment card data to the merchant. 12.A system in accordance with claim 10 wherein the computer associatedwith the merchant is further configured to update the payment cardinformation in the merchant database to match the updated expirationdate.
 13. A system in accordance with claim 10 wherein the computerassociated with the merchant is further configured to update theexisting expiration date in the merchant database with the updatedexpiration date.
 14. A system in accordance with claim 8 whereinquerying the first database further includes identifying the candidatepayment card as a payment card associated with a CNP/RP transaction. 15.A system in accordance with claim 8 wherein notifying the merchantfurther includes notifying an acquirer associated with the merchant thatthe existing expiration date has been replaced with the updatedexpiration date, and that the updated expiration date should be used forfuture transactions.
 16. Computer-readable storage media havingcomputer-executable instructions embodied thereon, wherein, whenexecuted by at least one processor, the computer-executable instructionscause the processor to: query a first database to identify a candidatepayment card having stale payment card data, wherein the stale paymentcard data includes at least an existing expiration date that is within apredetermined period of time of a selected calendar date; query a seconddatabase to identify at least one recent transaction involving thecandidate payment card, wherein the at least one recent transactionincludes payment card data having an updated expiration date; and notifya merchant associated with a card-not-present recurring payment (CNP/RP)transaction that the existing expiration date has been replaced with theupdated expiration date.
 17. The computer-readable storage media inaccordance with claim 16, wherein querying a first database furtherincludes identifying a candidate payment card having an existingexpiration date after a stale date, wherein the stale date is apredetermined number of days before the existing expiration date. 18.The computer-readable storage media in accordance with claim 16, whereinnotifying the merchant further includes transmitting the payment carddata to the merchant.
 19. The computer-readable storage media inaccordance with claim 16, wherein querying a first database furtherincludes identifying a candidate payment card associated with one ormore CNP/RP transactions.
 20. The computer-readable storage media inaccordance with claim 16, wherein notifying the merchant furtherincludes notifying an acquirer associated with the merchant that theexisting expiration date has been replaced with the updated expirationdate, and that the updated expiration date should be used for futuretransactions.